Vice chairman of UAE’s NMC Health quits as shareholder twists emerge

NMC is the largest health care provider in the UAE. (Supplied)
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Updated 16 February 2020

Vice chairman of UAE’s NMC Health quits as shareholder twists emerge

  • Resignation came after UK regulators announced that they were taking a closer look at the company

DUBAI: NMC Health is still trying to unravel details about the holdings of the company’s top investors, it said on Friday after announcing that one of its controlling shareholders had resigned from the board.

The largest private health care provider in the UAE is listed in London on the blue-chip FTSE 100 index but has come under increasing pressure after shareholder Muddy Waters raised questions over its finances, prompting major investors to sell out, sending its share price tumbling.

On Friday NMC said that vice chairman Khalifa Butti Omeir Bin Yousef is stepping down from the board. His resignation came after UK regulators this week said they were looking into the company after news that founder and chairman B.R. Shetty had inaccurately disclosed the size of his stake in the business.

NMC subsequently said on Friday that there had been a series of complex shareholder dealings involving Shetty, Bin Yousef and another top investor, Saeed Butti Al-Qebaisi.

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The company said Bin Yousef and Al-Qebaisi had notified them that some of their shares had been pledged as security for loans by Shetty in an arrangement they were not party to.

“The company continues urgently to seek clarity from Dr. B.R. Shetty, Khalifa Bin Butti and H.E. Saeed Bin Butti in relation to the above arrangements and their respective shareholdings,” NMC said.

The disclosure is likely to raise further questions about NMC’s governance and loans taken out by its top shareholders against their stock. Shetty on Monday said that he was stepping back from the board while a legal review of his shareholding disclosures continues.

Al-Qebaisi and Bin Yousef on Friday said that an estimated 26 million of the 58.5 million shares they hold have been pledged against loans.

Shares in NMC were down 3.8 percent in afternoon trade. The stock has slumped by 70 percent since Muddy Waters issued a report on Dec. 17 questioning the value of the company’s assets and reported cash balances.

NMC has denied Muddy Waters’ allegations and launched an independent review of its finances.

The company this week said it had received buyout interest from Italian-backed GKSD Investment Holding and United States-based KKR & Co. GKSD subsequently confirmed it could bid for the hospital operator but KKR has said it would not.


Philippine jobless rate hits record 17.7% in April due to pandemic

Updated 05 June 2020

Philippine jobless rate hits record 17.7% in April due to pandemic

  • The Philippines is facing its biggest economic contraction in more than three decades
  • April’s 17.7 percent unemployment rate equivalent to 7.3 million people without jobs

MANILA: The Philippines’ unemployment rate surged to a record 17.7 percent in April, the statistics agency said on Friday, as millions lost their jobs due to a pandemic-induced lockdown that battered the economy.
The Philippines, which before the pandemic was one of Asia’s fastest growing economies, is facing its biggest contraction in more than three decades after the new coronavirus shuttered businesses and crushed domestic demand.
April’s unemployment rate, which is 7.3 million people without jobs, compares with 5.3 percent in January and 5.1 percent in April last year.
“We should not lose sight of the fact that this loss in employment is really temporary,” Economic Planning Undersecretary Rosemarie Edillon said in an online news conference.
The lockdown in the capital, Manila, which was one of the world’s longest and strictest, was relaxed as of June 1 to allow much-needed business activity to resume and soften the economic blow of the coronavirus, which has infected more than 20,000 in the country.